The United States will be able to deploy troops to Panama according to a joint deal seen by AFP, a major concession to President Donald Trump as he seeks to reestablish influence over the vital waterway.

The document, signed on Wednesday, allows US personnel to deploy to Panama-controlled installations for training, exercises, and a range of other activities.

The latest development comes as US Defense Secretary Pete Hegseth said that Panama should secure the canal with support from America, not China.

"The Panama Canal is key terrain that must be secured by Panama with America and not China," Hegseth told a news conference in Panama City with Frank Abrego, Panama’s public security minister.

The US is securing the Panama Canal and countering China's "malign influence," he said.

"We will be signing a joint declaration with the minister of canal affairs on the security and operation of the Panama Canal, which is the framework for US warships and auxiliary ships to sail first and free through the Panama Canal," said Hegseth.

'Joint US-Panama presence'

He said a memorandum of understanding will increase joint training, exercises, operations, and re-establish rotational and joint presence at several bases.

The defense chief argued that Chinese influence in the canal, or canal area does not serve Panamanian interests or American interests.

 President Donald Trump said in February that Panama violated its agreement with the US on the canal and declared that Washington would take back control of the waterway.

Shortly after Trump's remarks, US State Secretary Marco Rubio visited Panama to meet President Jose Raul Mulino, which was followed by Panama’s exit from China’s Belt and Road initiative, drawing criticism from Beijing.